Axe Compute (Nasdaq: AGPU) and Duos Technologies Group (Nasdaq: DUOT) have signed agreements to add up to 55 megawatts of new AI data-center capacity across multiple U.S. sites, in a deal worth more than $500 million in expected aggregate payments and backed by minority equity stakes for the neocloud in the underlying facilities.
From a 10 MW pilot to a co-owned platform
The new 55 MW commitment layers on top of an existing 10 MW deployment at Duos’ Georgia edge-data-center facility, where Duos is already building out capacity for Axe Compute. Under nonbinding term sheets, Axe Compute expects to take a 49% equity interest in the project entities alongside Duos, moving the neocloud from a pure tenant to a co-owner of its own power and real estate. Duos, in turn, secures a non-dilutive financing model to launch more edge sites faster. Initial project readiness is targeted for late 2026, extending into early 2027.
Why Axe wants to own the building
“Rather than renting space in someone else’s facility, the company will own a stake in the buildings and power that serve its customers,” Axe Compute said, describing the model as an extension of Axe Compute Build. Chief executive Christopher Miglino said the deal was driven by trust in Duos’ execution and by accelerating demand: “We see compute demand accelerating, and we are excited to deliver more Axe Compute Build contracts to our customers alongside a key partner.” Duos CEO Doug Recker said the pair are aiming for “a repeatable model for bringing purpose-built AI capacity to market.”
Riding a wall of AI-power demand
The agreements land as US AI infrastructure spending accelerates. Axe Compute has now signed more than $3 billion of contracted value in 2026, including a recent $1.5 billion five-year dedicated infrastructure deal, and disclosed $317 million in customer prepayments the day after the Duos deal. The tie-up follows other summer AI-power stories including NVIDIA’s Cloverleaf partnership for U.S. AI factory sites, Emerald AI’s $150M Series A and Anthropic’s Theseus infrastructure venture.
Reporting based on coverage from GlobeNewswire, Axe Compute and Duos Technologies.